• Sun. Apr 21st, 2024

Intel’s Semiconductor Manufacturing Business Takes a Hit: Will foundry losses peak by 2030?

BySamantha Nguyen

Apr 4, 2024
Intel’s stock plunges 8% following substantial losses in foundry business

Intel’s shares took a hit on Wednesday as the company released its long-awaited financials for its semiconductor manufacturing business in an SEC filing. The filing revealed an operating loss of $7 billion in 2024 for the foundry arm of the company.

This is the first time that Intel has disclosed revenue totals for its foundry business separately from its products business, which reported $11.3 billion in operating income in 2024. Intel expects its foundry losses to peak in 2025 and break even by the end of 2030.

Analysts at Cantor Fitzgerald praised Intel for its new financial reporting structure but emphasized the need for the company to increase its foundry and product operating margins. Stifel analysts also viewed Intel’s strategic plans positively but reiterated a hold rating on the stock.

Despite the challenges ahead, both Cantor Fitzgerald and Stifel analysts are cautiously optimistic about Intel’s future. They recognize the long-term nature of Intel’s plans and suggest that investors consider other AI-focused companies like NVDA and AMD in the shorter term.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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